Fluor (FLU) AI Stock Analysis

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Fluor

(BX Swiss:FLU)

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Positive Factors

Record awards and backlogRecord awards and decade-high backlog provide substantial visibility for future project execution and revenue conversion. Because projects are expected to ramp over the next two years, this contracted work can support sustained growth while strengthening Fluor’s position in large, complex capital projects.

Negative Factors

Volatile profitabilityThe sharp move from strong profitability to losses indicates inconsistent earnings quality and execution outcomes. Although revenue increased substantially, a meaningfully negative net margin shows that growth has not reliably translated into shareholder earnings, reducing confidence in sustainable returns over the next several quarters.

Fluor Business Overview & Revenue Model

Company Description

Fluor Corporation provides engineering, procurement, and construction (EPC); fabrication and modularization; and project management services worldwide. The company operates through three segments: Urban Solutions, Energy Solutions, and Mission Soluti...

Fluor Earnings Call Summary

Earnings Call Date:Nov 06, 2026(Q3-2026)|Next Earnings Date:Nov 12, 2020

Earnings Call SentimentPositive

The call was predominantly positive, supported by record $10.9 billion awards, backlog of $34.3 billion, maintained 2026 guidance, strong cash generation in the quarter, continued share repurchases, and a broad pipeline across power, mining, data centers, life sciences, refining, and nuclear. The main negatives were lower adjusted EBITDA, a sharp decline in underlying Energy Solutions profit, a $25 million mining charge, and the potential for an approximately $2 billion backlog reduction. Overall, the breadth of awards, backlog growth, execution pipeline, and shareholder returns significantly outweighed the disclosed challenges.

Positive Updates

Record Awards and Backlog Growth

New awards reached a Fluor record of $10.9 billion in the third quarter, nearly 3x quarterly revenue. Ending backlog increased to $34.3 billion, the highest level seen this decade, with projects expected to ramp to full execution over the next 2 years. Backlog was approximately 70% reimbursable, although the company expects the mix to trend down to the 60s as power opportunities convert into backlog.

Negative Updates

Adjusted EBITDA Declined Year Over Year

Third-quarter adjusted EBITDA was $142 million, down from $161 million a year ago, a decline of approximately 11.8%. Management also noted that third-quarter results included favorable closeouts and settlements that are not expected to repeat in the fourth quarter.

Company Guidance

Fluor maintained full year 2026 adjusted EBITDA guidance of $500 million to $525 million and full year adjusted EPS range of $2.70 and $2.80, implying fourth quarter adjusted EBITDA of roughly $150 million to $175 million and adjusted EPS of about $0.85 to $0.95; adjusted operating cash flow is expected at $430 million to $460 million, full year new awards book to burn ratio potentially approaching 1.4x and well above 1 for all of 2026, G&A approximately $180 million to $190 million excluding up to $15 million in outside costs, a full year tax rate of 25% to 27%, revenue of approximately 65% Urban, 20% Energy, and 15% Mission, and full year segment margins of approximately 2.5% in Urban, 7% in Energy, and 6.5% in Mission; for 2027, adjusted EBITDA growth percentage is expected to be in the low double digits compared to 26, book-to-burn greater than 1, share repurchases anchored around half of expected annual free cash flow, utilization is expected to improve in 2027 and in 2028 with the big step in 2028, and a potential reduction of approximately $2 billion in backlog could occur as early as Q4.

Fluor Risk Analysis

Fluor disclosed 40 risk factors in its most recent earnings report. Fluor reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Fluor Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

CH:FLU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTZ	69Neutral	$14.52B	30.61	13.99%	―	25.66%	45.34%
KBR	68Neutral	$4.91B	10.43	27.25%	1.82%	-2.98%	13.08%
J	64Neutral	$18.39B	54.87	9.81%	0.89%	20.03%	-28.63%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PRIM	50Neutral	$3.67B	40.35	5.90%	0.44%	-5.37%	-65.14%
ACM	48Neutral	$9.09B	31.79	12.54%	1.77%	-4.24%	-44.22%

* Industrials Sector Average

Performance Comparison

CH:FLU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ACM	Aecom	70.25	-61.09	-46.51%
J	Jacobs Solutions Inc.	157.47	4.69	3.07%
KBR	KBR Inc	36.29	-5.05	-12.22%
MTZ	MasTec Inc	189.18	-3.04	-1.58%
PRIM	Primoris Services	72.22	-45.45	-38.62%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Fluor AI Stock Analysis